Annual Income Declaration for Individuals in Armenia

Armenia is introducing a phased system of annual income declaration for individuals (similar to the existing real beneficiary declaration) between 2023 and 2026. In 2025, citizens of the Republic of Armenia (RA) must declare their income. This article covers what the income declaration for individuals entails, how it will be filed, and what you need to know about the process.

Contents

1 Who Must File an Annual Income Declaration?

2 How to Submit the Annual Income Declaration

3 What Happens If I Don’t File the Annual Income Declaration in 2025?

4 Which Income Types Are Subject to Declaration?

5 Do You Need to Declare Funds Transferred to Your Bank Account or Card?

Who Must File an Annual Income Declaration?

For the 2024 reporting year, an annual income tax calculation-declaration must be submitted to the tax authority by November 1, 2025, by RA resident citizens (excluding minors as of December 31) who, during 2024:

Were considered salaried employees (wage workers).
Received taxable income under civil law contracts.
Held a state service, community service, and/or public position as defined by the RA
Law “On Public Service” as of December 31, 2024.
Were a participant (shareholder) in an RA resident commercial organization that
declared gross income of 1 billion AMD or more for 2023.
Were considered the real beneficiary of a legal entity under the RA Law “On Combating
Money Laundering and Terrorist Financing.”
Received loans totaling 20 million AMD or more.

How to Submit the Annual Income Declaration

The annual income declaration must be submitted through the “Electronic Reporting System for Individuals” section on the self-portal.taxservice.am website. The information already known to the State Revenue Committee (SRC) through tax agents will be pre-filled on the site. You will only need to add the remaining necessary information. The declaration will not include income received or property/funds held prior to 2024.
To use the system and submit the declaration, you must complete electronic identification and possess an electronic signature.

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What Happens If I Don’t File the Annual Income Declaration in 2025?

Failure to declare income on time for the first instance results in a warning. Failure to submit the declaration within 30 days after the warning will result in a fine ranging from 5,000 to 50,000 AMD.

Which Income Types Are Subject to Declaration?

By order of the SRC Chairman, a threshold of 300,000 AMD has been set for deductible income. Income received below this threshold may be excluded from the declarant’s report. This threshold applies to non-taxable income received ONCE via donation, gratuitous transfer, loan, or alienation of property. The 300,000 AMD threshold applies to each individual transaction, not the sum of similar transactions.

Do You Need to Declare Funds Transferred to Your Bank Account or Card?

The Annual Income Tax Declaration requires reporting all income received by the individual during the reporting year. Therefore, if funds transferred to a bank account or card are considered received income, they must be entered in the corresponding sections of the declaration.

It is important to remember that non-taxable income received once through donation, gratuitous transfer, loan, or alienation of property can be excluded from the declaration if it is less than 300,000 AMD.

This means that if, during 2024, you received transfers to your bank account or card as a donation that did not exceed 300,000 AMD per transaction, you may include this information in the declaration only if you wish. However, even if you include it, this income is NOT subject to taxation.